ARPOB (average revenue per occupied bed)

What does ARPOB (average revenue per occupied bed) mean?

ARPOB is a hospital's revenue (inpatient only, or inpatient plus outpatient, depending on the company) divided by the number of occupied bed days in a period, usually quoted per day. Listed Indian hospital chains such as Apollo Hospitals, Max Healthcare and Fortis report it. It rises with more complex treatment (such as cardiac, cancer or transplant cases), a better payer mix (more insured and international patients) and shorter stays, since the first days of a stay usually bring the most revenue. Revenue = beds x occupancy x days x ARPOB. Example: a hospital with 300 beds at 75 percent occupancy has 300 x 0.75 x 365 = 82,125 occupied bed days a year; if it earns 900 million, its ARPOB is about 10,960 a day.